That's an insane amount of timing advance; as high as 64 degrees. I was about to ask if the graph with the grey zone could be real, but I remember reading a statement that the knock circuit could reduce advance by 38 degrees which I thought how could that even be possible.
This answers one question for me at least, regarding the problem as it pertains to the blackbird, there's a guy that claims to achieve equal dyno readings with or without the fault set. What you're showing is that the knock circuitry timing advance control only functions within a portion of the rpm range, and can potentially sharply drop at the high end to have no effect by about 85% of WOT, so at redline it's out of the loop anyway. I'll have to go back and see if he posted or has the charts, maybe they could be overlayed for comparison. I'd expect from this that horsepower and torque would be compromised through the knock sensor range, then track about equally to peak horsepower. It would be interesting to see to what extent that change exists, my guess would be it's most significant at lower rpm / throttle position, but I'm not a good guesser. This is very interesting.